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Business Studies > Ch 35- Demand And Supply > Flashcards

Ch 35- Demand And Supply Flashcards

1
Q

Market

A

Where buyers and sellers interact to exchange goods and services

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2
Q

Types of markets

A

Final- actual locations eg shops
Factor- where factors of production are bought and sold eg property market
Commodities- where raw materials used in producing goods are bought and sold eg agricultural products

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3
Q

Consumer behavior

A
  1. Consumers are rational
  2. Make choices to get best use of limited resources
  3. Try to get as much benefit from limited resources
  4. Law of diminishing marginal utility
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4
Q

Demand

A

The quantity of a product that consumers are willing to buy at a given price

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5
Q

Effective demand

A

Willingness to buy backed up by an abiltly to pay

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6
Q

Inflation

A

Sustained increase in the general level of prices from one period to another

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7
Q

Demand schedule

A

Shows number of goods demanded at different prices

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8
Q

Demand curve

A

Graph that illustrates expected demand for a product at various prices

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9
Q

Law of demand

A

Price up, quantity down and vice versa

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10
Q

Exceptions to law of demand

A

Addictive product
Monopoly
Medicine.

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11
Q

Factors affecting demand

A 
Substitute goods (similar goods)
Complementary goods
Trends
Seasonal factors
Advertising 
Income levels
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12
Q

Supply

A

The quantity of a product that suppliers are willing to make available for sale at a given price

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13
Q

Supply schedule

A

Shows how much a firm is willing to supply at particular prices

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14
Q

Supply curve

A

Graph that illustrates quantity of a product that sellers are willing and able to supply at a series of prices

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15
Q

Law of supply

A

Supply increases, when price increase and vice versa

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16
Q

Exceptions to law of supply

A

Weather
Fashionable Goods
Expected price increase

17
Q

Factors affecting supply

A 
Environmental conditions 
Price of related good
Production costs
Technology 
Number of suppliers
18
Q

Commodity

A

Raw materials that can be bought and sold eg wheat

19
Q

Equilibrium

A

Demand=supply

20
Q

Law of supply and demand

A

How interaction of supply and demand affects price

21
Q

Black market

A

Where goods and services are sold and bought illegally

22
Q

Price discrimination

A

When the same product is sold to different people at different prices eg student discount

Business Studies (8 decks)

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